Creating a Culture of Employee Training

When looking for areas to cut costs, company managers sometimes overlook the steep price tag that high employee turnover carries. But according to a recent study, a new hire typically needs 12 to 13 1/2 months on the job to become 100% proficient. When a veteran employee leaves and is replaced by someone new, your rental operation loses productivity for months to come. A location with heavy turnover never catches up.

Studies indicate the average employee turnover-to-cost ratio is 1.52 times salary. That means if you pay your counter agents $18,000 a year, your company loses more than $27,000 every time one leaves and is replaced. Many of these costs are hidden, resulting from declines in incremental sales and customer loyalty.

Since one of the leading drivers of employee turnover is insufficient training, you can have a major impact on your operation’s bottom line by improving your training program.

When your business is short-handed, it’s tempting to treat new-hire training as an afterthought and relegate those duties to an employee who doesn’t seem as busy as the others. Another approach is to place new hires in a break room and have them read an employee manual before bringing them out to the counter to observe.

In this environment, training has a high probability of failure. However, an organization with a training culture has a set, allocated trainer and a training plan in written form.

An organization with a training culture treats training as a necessity, not a luxury. The operation schedules training on an ongoing basis and has total support of the management team.

CONTINUED:  Creating a Culture of Employee Training
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